5 or more than in the rest of the euro area

More sophistication, transparency, and control the bonus pricing. These are essentially the principles of the proposals that the French bankers are getting ready to do this morning economy Minister, Christine Lagarde, before going to the Elysee Palace tomorrow. As Bercy the asked at the beginning of last week, French bankers have indeed worked on a strengthening of the code adopted in February last variable compensation - code to regulatory value which they consider that it is currently the more pointed and the more restrictive in the world.

Nevertheless. After the revelation early August 1 envelope billion euros funded by BNP Paribas in the second quarter to the title of the bonus, the public authorities wished to go further. Some in the Elysee Palace, argue for a cap on the bonus. The possibility of an increased taxation of trading activities on the other hand seems to be excluded. The proposals of banks resumed, they, the principles adopted in February, and to refine the application. The philosophy is always the same: to ensure that pay systems generate no risk, by not distributing what the company actually won.

A threshold setting the variable pay paid in deferred share should be proposed. In February, only a fork, ranging from 50 to 66, had been raised. This time, the bankers would be ready to engage on the threshold of 66. The delay between the time where is found the benefit of a position and the time when the bonus is paid should be extended, with the introduction of more stringent steps between the order of the accounts and the payment. Remuneration committees should finally see their role strengthened in the fixing of the poli - bonus ticks.

How banks integrate risk and the capital cost of the positions in the calculation of the bonus should also be subject to greater transparency. The principle of taking account of the risk had been set out in February, but implementation oe work very complex remains technically. Banks could, therefore, commit to make public the models they use. The question of the weighting in capital market, higher activities in French banks abroad, will be addressed indirectly. Something technical, but important for banks, and potentially enabling of distortions of competition, even in the calculation of the bonus.

Pressure on credit

If passed, this new arsenal place French banks at the end of regulation, but may penalize internationally (see below). "If one wants to go further, should that everyone apply what exists, namely the principles of the g-20, comments on a professional." This would be a very big step. "A message that the Elysee wear at the next G20 in Pittsburgh. Number of foreign banks still not applying the principles set out in London in early April, the French authorities could decide to no longer work with the most virtuous.

The other branch to be discussed this morning is that of the credit. The French settlements were committed, last October, to increase their stock of 3 to 4 in 2009, in consideration of the State capital, and injections of liquidity access support. The French Banking Federation (FBF) has already warned that these goals would be difficult to achieve. Banks expect rather to growth of the stock approaching 2 for the whole of the year 2009. But note that from June 2008 to June 2009, the outstanding grew by 3.5, or more than in the rest of the euro area. Is that public authorities should again enter the fist on the table, while the mediator of the credit, René Ricol, would have alerted the Elysee Palace this weekend on a tightening of the conditions of the credit during the summer. At the Elysee Palace were excluded not yesterday to review bilateral agreements signed between the State and the banks last October fixing the rate of access to the public security market